scams
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- Last Updated: Wednesday, 22 March 2023 20:44
- Published: Friday, 09 October 2020 20:39
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SCAMS:
There are so many scams going on that you may lose a good chunk of money if you are not careful when dealing with anyone in USA. Here's a good link on FTC website about how to identify scams and protect yourself from it:
https://www.consumer.ftc.gov/features/scam-alerts
Here are few scams that i've personally been hit with :(
1. Moving Companies Scam:
There are Moving companies on internet that move your stuff from one pace to another. The kind that you hire when changing houses, apartments, etc. There are 2 kind of Moving companies. One that are registered with the state, and others that are not registered. Different states have different requirments for registration. The companies that are not registered are in general scammers and corrupt. Craigslist is littered with such companies. They will tell you that they are registered and bonded, and have insurance, but if you ask them their DoT number or any paperwork, they will hang up the phone. The company name and owner names 9i.e The Moving company, owner: Joe) are very generic. They will have a website, and a phone number which changes frequently. They have no address or a fake address, social media page links to some other company with sm=imilar names and good feedback.
What these scammers do is that they will hire a guy or two and a truck to move your stuff. They will not give you any paperwork. They start loading the heavy stuff. If you don't like their loading, you can't back out. They will refuse to unload the stuff. On reaching the destination, they will demand extra money or threaten to never give your stuff back. They basically hold your stuff hostage. At that point, you try to go to the state's transportation website to complain, only to realize that they are unregistered, have no name or address. They may even be criminals who may loot you, take all your stuff, and in extreme cases kill you.
Here's a link to Moving company regulations across all 50 states: https://www.mymovingreviews.com/move/moving-companies-regulations/
Most companies are not limited to a state, but move stff across states. In that case, they are required to have a US DOT number. You can check more details here:
https://www.moving.com/tips/how-to-check-a-moving-companys-usdot-number/
The very first thing to do when hiring any Moving companies is to ask for their USDOT number. If they don't give you one, it's a scammer. Only hire companies which have a USDOT number, and a state license to transport. It will cost you a little more, but you will have ensure your safety and a route to resolution in case things go wrong.Never ever go with unregulated companies. Craigslist has "warning on the bottom" below the liasting for any moving company, warning you about all such pitfalls.
2. Utility Bill scam:
This is a very common scam in USA targeting hindi or urdu speaking community. I'm not sure how they get your phone number, but they call you and tell you that they have a great offer for your utllity bill. They usually speak in hindi and are extrememely friendly and courteous. They will say that they pay the bill on your behalf and you pay only 50% of what you owe. When you grow suspicious and ask how do they make money, they will say that have tieup with these utility companies, and they are trying to pass the savings to you. They ask for your utility bill details. Things go ok for first couple of months, and they start adding other bills to your discount.
Over time, the amount of money you pay them grows, and someday they will just disappear with all your money. No bills will be paid to any of the utility companies. I've gotten dozens of such phone calls. So stay clear.
3. Survey scam:
The survey scam is a very common scam, there's a high chance that you probably encountered them at least once in your life. If not consider yourself lucky.
Most survey scams start by a text message claiming to be a big company ex: Whole foods, Walmart, Apple, you get the point. They have very authentic looking logo, and text looks credible. They then say that if you do a survey or do a task you will get $100-$500 in return for your survey. But what happens is after you do the task the "Big company" ditches you and you don't get what your promised. In fact, you are out of a couple of thousands of dollars.
Here's a example: The "Big company" sends you a fake check thru ups overnight delivery for a large amount like $2000. The ups envelope and the content inside it including the survey form is very authentic looking. They ask you to go to a store (usually store like walmart) and buy may be 3 giftcards for $500 each and send them the code in 24 hours. They call you a "mystery shopper" or "secret shopper" and advise you not to talk to anybody about the survey. Since they sent you $2000 check, and you sent them only $1500 worth of gift cards, you make $500 in the process, which is yours to keep.
They instruct you "Do not tell the bank about this offer". The check is very real looking, and usually from a local bank. Since you are a smart person, you don't buy the giftcards immediately. You take the check to the bank to cash it out. You ask the bank person about the authenticity of the check. The cashier sees no issues with the check. So, you deposit the check and the money comes to your account in a day or so. You get the money and you feel good about yourself. You go ahead and buy the giftcards and send the code to the "Big company" via text. You are all laughing to yourself as to how easily you made $500 doing virtually nothing.
Now, 4-5 days later you get a cursed email... (this is around what they say) "Hello this is (insert bank name) we regret to tell you the check turned out fake and we withdrew all the money back. You have been charged $35 for the bounced check". Not only you lost $1500, you are stuck with charges for "bounced check" too. You contact the "Big company" via text/phone call. There's no response, as they have moved on to their next "customer". Oops, losing that $1500 hurt.
Some of these stories with not so happy ending ....
https://www.consumer.ftc.gov/blog/2018/05/scam-story-secret-shopping-and-fake-checks
https://www.consumer.ftc.gov/blog/2020/03/fake-offers-secret-shopper-jobs
4. Home Warranty scam:
This may not be termed as a a scam, as it's a business that provides warranty services. You are typically lured into buying this, when purchasing a home. However, all these are utter scam. Never ever buy any of these Home Warranty Plans. See more details under Housing section in "Home Insurance and Warranty".
5. General Scams:
Any email or phone call or text saying that your account or credit card has been frozen, and they need to verifying you by clicking on a link are all impersonators. They try to get your login id and password or your credit card details or bank account details. Never ever click or text or call such numbers. Always call the customer service directly by looking at the phone numbers on the back of your card or by going to their website. Doesn't matter how serious that email or text appears to be, disregard it. Nothing is going to happn to your money if you decide to wait. Scammers try to get more details about you or your account with banks or merchants and then try to target you so that they appear legitimate. There are 1000's of posts on FTC website. Read those posts to see how people are getting scammed. As a rule, i never click on any link, even if it appears legitimate. I always call customer service.
Few links below on scams reported to FTC:
Amazon impersonator: https://www.consumer.ftc.gov/blog/2021/10/amazon-impersonators-what-you-need-know?utm_source=govdelivery